If you supply goods or services to large corporates, you know the pain of waiting 60, 90, or even 120 days to get paid.
Early payment programmes flip this script. They let you get paid in days instead of months, without taking on debt or giving up equity.
This guide explains exactly how these programmes work, what they cost, and whether they make sense for your business.
What Is an Early Payment Programme?
An early payment programme is a financing arrangement where your corporate buyer partners with a funder to pay you earlier than your normal payment terms.
Instead of waiting 90 days, you can choose to get paid in 10-14 days. The funder pays you upfront, then collects from your buyer on the original due date.
The key difference from other financing: these programmes are driven by the buyer, not the supplier. The buyer's credit rating determines the pricing, which often means much lower costs for you.
How the Process Works
Step-by-Step:
You deliver goods or services to your corporate buyer
Your buyer approves your invoice on their system
The approved invoice appears on the early payment platform
You choose which invoices to accelerate
The funder pays you within days (minus a small fee)
Your buyer pays the funder on the original due date
A Real Example in Rands
Scenario: You supply cleaning products to a major retail chain with 90-day payment terms.
Invoice amount: R500,000
Days until payment: 85 days remaining
Early payment discount rate:0.9% per month (based on the retailer's credit rating)
Cost to accelerate: R500,000 × 0.9% × (85/30) = R12,750
You receive: R487,250 in 3 days instead of R500,000 in 85 days
Effective cost:Lower than most other financing options because pricing is based on your buyer's credit, not yours
Why Pricing Is Often Lower
Traditional invoice financing prices based on your credit risk as the supplier. If you're a small business, that means higher rates.
Early payment programmes work differently. The funder looks at your buyer's credit risk, and if your buyer is Pick n Pay, Shoprite, or a mining house, that risk is very low.
Low risk equals low pricing. You benefit from your customer's financial strength.
The Flexibility Factor
One of the biggest advantages is choice. You decide which invoices to accelerate and when.
Cash flow tight this month? Accelerate everything. Flush with cash? Wait for normal payment.
There's no commitment, no minimum volume, and no penalty for not using the facility.
What You Need to Qualify
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Supply to a corporate buyer that has an early payment programme
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Approved invoices on your buyer's system
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A bank account to receive payment
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Basic KYC documentation (company registration, ID documents)
Notice what's not on the list: financials, tax clearance, collateral, or trading history. The buyer's approval of your invoice is the main requirement.
Common Questions
Does my buyer need to know I'm using this?
Yes, but they've already set up the programme specifically to help suppliers like you. Using it is encouraged, not frowned upon.
What if my buyer doesn't have a programme?
We can help you explore other options like invoice discounting, or in some cases, help your buyer set up a programme.
Is there a minimum invoice size?
This varies by programme. Some have minimums of R50,000, others go as low as R10,000.
How quickly can I get set up?
If your buyer has an existing programme, onboarding typically takes 3-5 business days.
Is This Right for Your Business?
Early payment programmes work well if you supply to large corporates with extended payment terms and want predictable, low-cost access to cash flow.
They're particularly powerful for businesses that have grown their corporate customer base but find themselves squeezed by long payment cycles.
The combination of buyer-backed pricing and flexible usage makes this one of the most supplier-friendly financing options available.
Ready to Explore Early Payment Programmes?
At Digital Equity Management, we help South African SMEs connect with early payment programmes that match their corporate customer base. Let's discuss whether this solution fits your business.
From TikTok or Google? Convert the Learning into a Deal Check
If you found this through TikTok, Google, or a shared link, the next step is simple: send the actual invoice, purchase order, trade, or funding requirement so DEM can help you understand the structure.
Send us your deal, invoice, or PO and we'll structure it for you. We'll tell you within 24 hours if it's fundable.
Want to learn more about alternative finance?
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